Earlier quoted context omitted.
> taxpayers holding 30% of its outstanding stock. It's always amusing that they frame this as the lowly taxpayer holding stock in a company after the government bails a company out. I've never received the stock certificates, and I certainly don't see any dividends or have the ability to sell my commensurate portion of the stock holdings. The taxpayer pays for the bailouts but does not see any benefit for doing so.
Not a fan of government bailouts or funding any company at all nor an American, but this framing is weird. Citizens don’t get dividends from government property. They get their tax benefits from government services, e.g, infrastructure, healthcare, police, etc.
99-year old trucking company Yellow shuts down, putting 30k out of work
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Re: 99-year old trucking company Yellow shuts down, putting 30k out of work
#32I often hear that it's good for companies to fail if they can't meet a minimum threshold of compensation. If that's the case the unions should have gone on strike.
Re: 99-year old trucking company Yellow shuts down, putting 30k out of work
#33Earlier quoted context omitted.
They walk away with $0 in equity.
They have filed for bankruptcy, so leadership will still likely get their compensation packages. I'm not going to waste time doing the research, but I would assume leadership had been receiving all of their usual comp and bonuses right up until the end as well. The workers will get $0.
> I'm not going to waste time doing the research
Yeah that's pretty clear.
Re: 99-year old trucking company Yellow shuts down, putting 30k out of work
#34I hope there will be a HBR or some other case study done on Yellow, because the interplay between bad loans + union demands + poor management seems like something US businesses need to be more prepared for.
From the sounds of it, its mostly the bad loans + poor management part that killed Yellow. Management of the company have been asleep at the wheel for some time now, union demands are not likely the precipitating factor here. EDIT: All I'm pointing out here is that I don't think this can land squarely on union demands, which is what I think some of the press are making it out to be. The actual financial mismanagement…
Re: 99-year old trucking company Yellow shuts down, putting 30k out of work
#35> “The reason they were using Yellow was because they were cheap,” he said. “They’re finding out that price was below the cost of supporting a good operation.”
What happened that made them decide to shut the company down instead of raising their prices?
Re: 99-year old trucking company Yellow shuts down, putting 30k out of work
#36Re: 99-year old trucking company Yellow shuts down, putting 30k out of work
#37The company was an unmitigated shitshow for a long time, and didn't perform its basic duties as a shipper. I've had LTL shipments lost for weeks at a time with nothing but a shrug and an "It'll (maybe) get there when it gets there". So it doesn't surprise me at all that they couldn't reach an agreement with their labor.
Sounds like Schroedinger's shipment. If we don't know where it is, can it really be lost?
Re: 99-year old trucking company Yellow shuts down, putting 30k out of work
#38"The closing is bad news not only for its employees and its customers, who generally used Yellow because it offered some of the cheapest rates in the trucking sector." Perhaps they shouldn't have offered the cheapest rates in the trucking sector while failing their obligations. Taxpayers ended up holding 30% of this company's stock and they still couldn't figure out how to become profitable after a $700 million infus…
Re: 99-year old trucking company Yellow shuts down, putting 30k out of work
#39Some person or group of people made that decision.
Re: 99-year old trucking company Yellow shuts down, putting 30k out of work
#40I hope there will be a HBR or some other case study done on Yellow, because the interplay between bad loans + union demands + poor management seems like something US businesses need to be more prepared for.
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The rise of unions in 20th century America was a compromise by the capitalists, who feared an actual "Bolshevik" revolution.